Currency Substitution in Indonesia
Date Issued
2007
Date
2007
Author(s)
Lin, Meng-Hsien
DOI
zh-TW
Abstract
This paper employs monthly data over the 1996-2006 periods to investigate whether currency depreciation in Indonesia has resulted in currency substitution away from Rupiah. To take account of currency substitution, the demand for money that includes the exchange rate in addition to income, interest rate, also an interaction dummy variable between time dummy and exchange rate. The methodology is based on an application of the Johansen and Juselius（1990）cointegration technique. There is no evidence of currency substitution in real M1 equation.
Subjects
通貨替代
貨幣需求
共整合
誤差修正模型
印尼
Currency substitution
Indonesia
Money demand
Cointegration
VEC model
Type
thesis
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ntu-96-R93341010-1.pdf
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